A Mexican telecom mogul who holds the title of world's richest man, and one of President Obama's top donors are both getting even richer from the U.S. government program that supplies so-called "Obamaphones" to the poor.
Carlos Slim, who has an estimated net worth of $70 billion, owns a controlling stake in TracFone, which makes $10 per phone for each device it provides to poor Americans. The company, whose president and CEO is Frederick “F.J.” Pollak, also makes money from extra minutes and data plans it sells to subscribers who get phones and service through the government's Lifeline program. The program, which began in the mid-1980s, has exploded in the past four years after being expanded from supplying landlines to the poor to providing cellular phones.
“I’m not against a company making a profit. If they are making money off lifeline, the blame goes to the federal government for creating the program."
- Rep. Tim Griffin (R-AR)
The phones came into the national spotlight after a viral video surfaced on YouTube in which a Cleveland, Ohio, woman praised the president, saying he needed to be re-elected because he gives out free phones.
“Everybody in Cleveland, every minority, got an Obama phone. Keep Obama as president. He gave us a phone. He gonna do more,” the woman said in the video.
Slim’s Movil America owns TracFone and recently snapped up service provider Simple Mobile for $100 million. TracFones and Simple Mobile service are huge players in the Lifeline program through the company's “SafeLink Wireless” brand. TracFone had 3.8 million subscribers through the federal program as of late 2011.
Pollak has donated at least $156,500 to Democratic candidates and committees this cycle, including at least $50,000 to the Obama campaign. His wife, Abigail, is a campaign bundler for Obama and has raised more than $632,000 for the president this cycle, and more than $1.5 million since 2007. She has personally contributed more than $200,000 to Democratic candidates and committees since 2008.
The Pollaks hosted Obama at their Miami Beach home in June for a $40,000-per-plate fundraising dinner, and hosted a similar event with Michelle Obama in July 2008. The couple personally donated a combined $66,200 to Obama’s re-election effort that year.
U.S. Rep. Tim Griffin, (R-Ark.), who has been one of the biggest critics of the Lifeline program's explosive growth, said he can't blame Slim for doing lucrative business with the federal government.
“I’m not against a company making a profit," Griffin said. "If they are making money off the program, the blame goes to the federal government for creating the program."
Griffin recently introduced a bill on Capitol Hill to end the Lifeline program, which cost $1.6 billion in 2011, up from $772 million in 2008. While not technically a tax, the program is funded by mandatory fees tacked on to consumers' phone bills, then disbursed through the Federal Communications Commission and states.
“This program is rife with waste and abuse," Griffin said. "It’s set up in a way where people can receive multiple phones for free.”
Griffin said he has seen cases in which single individuals obtained dozens of the phones, and said under the lax requirements, more than 80 million Americans are eligible.
According to the FCC, “Lifeline is a government benefit program supported by the Universal Service Fund that provides a discount on phone service for qualifying low-income consumers. Lifeline helps ensure that eligible consumers have the opportunities and security that phone service brings, including being able to connect to jobs, family, and emergency services.”
The FCC announced in July that new reforms saved $43 million in savings by eliminating duplicate subscriptions and outdated subsidies and claims that the agency is on track to recover $200 million for the year.
But Griffin said it's time to end a subsidy that gives the poor a luxury item and makes the world's wealthiest man richer.
“I simply do not think that the taxpayers should be footing the bill for someone’s cell service and social interaction,” Griffin said. "If that’s the case, what should the government pay for and not pay for? Let’s just start paying for everyone’s gas.”

The Lifeline program originated in 1984, during the administration of Ronald Reagan; it was expanded in 1996, during the administration of Bill Clinton; and its first cellular provider service (SafeLink Wireless) was launched by TracFone in 2008, during the administration of George W. Bush. All of these milestones were passed prior to the advent of the Obama administration.

It was nowhere near as big as it is now and compassionate conservatives like myself agree people need help sometimes and that is fine, you just don't get womb to the tomb benefits.

Cite the program has expanded massively? Cite womb to tomb benefits?

FWIW - I do agree that food stamps are being given out way too liberally right now, and that there should be some minimal nutrition requirements. Food stamps for RedBull is ridiculous. I also think welfare-to-work should remain a federal requirement and not left up to the states. It's actually cheaper to keep paying people than to try to get them into work training programs. So the first time states hit a budget crunch (which is always nowadays) they halt the work training requirement and just send out checks.

So maybe we aren't that far off. But I'd like to see some data that shows the phone program has been expanded to ridiculous extremes.

"which cost $1.6 billion in 2011, up from $772 million in 2008. While not technically a tax, the program is funded by mandatory fees tacked on to consumers' phone bills, then disbursed through the Federal Communications Commission and states."

So these idiots are are causing our phone bills to be higher so we can pay for these phones also. Good gawd we are screwed up....

__________________"And if you don't know where you're going
Any road will take you there" - George Harrison

Oh and I am at the fresh seafood joint in the rough side of town (packing heet of course )and I am buying the 6.59 medium shrimp and the ebt program members are buying the Lobster tails and Huge Scallops

Oh and I am at the fresh seafood joint in the rough side of town (packing heet of course )and I am buying the 6.59 medium shrimp and the ebt program members are buying the Lobster tails and Huge Scallops

What do they have signs on or something or are you simply stereotyping?

Back home there is a place called Papa Murphy's you call them and order a custom uncooked pizza. I used to go there often on the way home from work and pickup a couple pizzas and cook them at home on movie nights or when having friends over to watch a game. They had a huge sign stating we accept EBT. I had no idea what that means so I asked the manger about it. He told me it was welfare. He went on to say the majority of his store sales were EBT customers. I would watch time and time again people driving much nicer vehicles than I own come in and buy $50 to $60 dollars worth of pizzas on the poor card. Anyone who is blind enough to think our welfare system is not being abused does not venture out much. It is popular to rail against those who point this out, and I am saying blow me you are blind~

__________________The Trump campaign and Black Lives Matter movement are perfect for each other. Both sides filled with easily led and angry nitwits convinced they are victims~

Back home there is a place called Papa Murphy's you call them and order a custom uncooked pizza. I used to go there often on the way home from work and pickup a couple pizzas and cook them at home on movie nights or when having friends over to watch a game. They had a huge sign stating we accept EBT. I had no idea what that means so I asked the manger about it. He told me it was welfare. He went on to say the majority of his store sales were EBT customers. I would watch time and time again people driving much nicer vehicles than I own come in and buy $50 to $60 dollars worth of pizzas on the poor card. Anyone who is blind enough to think our welfare system is not being abused does not venture out much. It is popular to rail against those who point this out, and I am saying blow me you are blind~

Oh hell ya... I am blessed, I can afford whatever I want to eat but I have worked hard all my life to be able to say that. As I said before, I am a compassionate conservative, I don't like to see people hungry but if you give people Ribeyes to eat every night why are they going to try to get off that train.

They should be given the basics.... Hamburger,Hot Dogs, Chicken, Rice, Potatoes, and raw or frozen veggies... & fruits & grain.

Oh hell ya... I am blessed, I can afford whatever I want to eat but I have worked hard all my life to be able to say that. As I said before, I am a compassionate conservative, I don't like to see people hungry but if you give people Ribeyes to eat every night why are they going to try to get off that train.

They should be given the basics.... Hamburger,Hot Dogs, Chicken, Rice, Potatoes, and raw or frozen veggies... & fruits & grain.

Nothing fancy, just the basics

No you didn't, you didn't build that. You had a good teacher, and somebody built a road and a bridge(Never mind that one of your ancestors had the heck taxed out of him or her to pay for it), but you didn't do that by yourself man, come on now, show the brother some love.

No you didn't, you didn't build that. You had a good teacher, and somebody built a road and a bridge(Never mind that one of your ancestors had the heck taxed out of him or her to pay for it), but you didn't do that by yourself man, come on now, show the brother some love.

They have gotten alot of Mileage from that stupid statement but when you get him off that prompter, he screws up and tells the truth